Gemstar TV Guide International, which publishes TV Guide magazine, said Monday it has hired investment bankers to explore strategic alternatives, including the sale of the company. The company is controlled by Rupert Murdoch's News Corp., which also licenses an interactive program guide to cable and satellite TV companies as well as hardware makers.
Gemstar also operates the TV Guide cable channel and a horse-racing wagering channel. On Monday, Gemstar Chairman Anthea Disney said the board is happy with the growth and strategy of the company, but she said Gemstar was taking the next step to boost shareholder returns. "We are now poised to investigate the range of available strategic alternatives for continuing to build shareholder value," Disney said in a written statement.
The company hired UBS Investment Bank as a financial adviser. No timeline was given for making a decision. Gemstar has struggled over the years with declining circulation of its flagship magazine as well as distractions caused by federal investigations of its founder, Henry Yuen, and another executive; the two were accused of inflating revenue to meet quarterly earnings targets.
The company, which began to rebound in 2006 under the leadership of Richard Battista, recently launched a series of new efforts, including a search tool for Internet video. The new efforts will emphasize the company's core TV Guide brand. In 2006, net income rose 32 percent to $72.
5 million, or 17 cents per share, and revenue fell 5 percent to $571.3 million. Gemstar TV Guide International, which publishes TV Guide magazine, said Monday it has hired investment bankers to explore strategic alternatives, including the sale of the company.
News RSS